SOLVAY Reported An Underlying Profit Of €602 Million For The Second Quarter Of 2021, Up 47% Year On Year

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◆ 2Q2021 net sales grew organically by 20% year-over-year, returning to 2019 levels in most markets, with particularly strong demand in the automotive, electronics and construction sectors.  Sales outside the composites and oil and gas markets increased 22% compared to the same period last year and 6% compared to the second quarter of 2019. 

◆ Structural cost savings of €51 million in q2 and total structural cost savings of €131 million in Q1 2021, in line with the planned pace of €200 million in annual structural cost savings. 

◆ Underlying EBITDA for the second quarter of 2021 was €602 million, a 47% year-over-year growth rate on a comparable and foreign exchange basis, reflecting strong demand and declining costs.  Underlying EBITDA for the first half of 2021 was 5% higher than the same period in 2019. 

◆ The underlying eBITDA margin for the second quarter of 2021 was 24.5%, 4.3 percentage points higher than the same period last year, thanks to volume growth and structural cost reduction measures, but higher raw material, energy and logistics costs had an impact of €50 million in the second quarter.  

◆ The underlying net profit for the second quarter of 2021 reached €276 million, double that of the same period last year.  Free cash flow in the second quarter was €135 million, reflecting planned expenses for seasonal employee bonuses and higher financial services fees.  Excluding the impact of scope and one-off factors, cash flow in the first quarter of 2021 was €417 million, an increase of approximately 25% compared to the same period last year.